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Exploration Drilling Update

Singapore and Port Moresby, September 30, 2014: InterOil Corporation (NYSE,
POMSoX: IOC) today provided an update on its current exploration drilling program.


RAPTOR-1, PPL 475

InterOil is preparing to set seven-inch casing in the Raptor-1 well in PPL 475 in the Gulf
Province of Papua New Guinea. The casing point is slightly above the Kapau Limestone
target zone, and is in line with the well program.

At this stage, calcimetry, temperature and background hydrocarbon concentrations are
similar to those experienced before InterOil entered the Antelope reservoir. The significance
of these preliminary indications can be determined only by further drilling and logging.

Raptor-1 is about 12km west of InterOils multi-trillion cubic feet Elk-Antelope gas field.

InterOil holds a 65.208174% interest in Raptor-1 and is operator. Pacific Rubiales Energy
Corp. (TSX:PRE; BVC:PREC; BOVESPA:PREB) has a 12.903226% interest in the well and
minority interests hold 21.8886%.


BOBCAT-1, PPL 476

The Bobcat-1 well in PPL 476 in Papua New Guinea continues to drill in the Orubadi shale,
towards the Kapau Limestone target zone.

Bobcat-1 is about 30 km northwest of InterOils multi-trillion cubic feet Elk-Antelope gas field.

InterOil holds a 78.1114% interest in the well and is operator. The remaining 21.8886%
interest in the well is held by minority parties.

InterOil will keep the market informed of material developments.


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MEDIA RELEASE

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About InterOil Corporation:
InterOil Corporation is an independent oil and gas business with a primary focus on Papua New Guinea.
InterOils assets include one of Asias largest undeveloped gas fields, Elk-Antelope, in the Gulf Province, and
exploration licences covering about 16,000sqkm. The company employs more than 2000 staff and contractors.
Its main offices are in Singapore and Port Moresby. InterOil is listed on the New York and Port Moresby stock
exchanges.


Investor contacts
Singapore
Michael Lynn
Senior Vice President, Investor Relations
Michael.Lynn@InterOil.com
Phone: +65-6507-0222

David Wu
Vice President, Investor Relations
David.Wu@InterOil.com
Phone: +65-6507-0222

United States
Meg LaSalle
Investor Relations Coordinator
Meg.LaSalle@InterOil.com
Phone: +1-281-292-1800

Media contacts
Singapore
Robert Millhouse
Vice President, Corporate Affairs
Robert.Millhouse@InterOil.com
Phone: +65-6507-0222

Australia
John Hurst
Cannings Corporate Communications
jhurst@cannings.net.au
Phone: +61 418 708 663


Forward Looking Statements
This press release includes forward-looking statements as defined in United States federal and Canadian securities laws. All statements,
other than statements of historical facts, included in this press release that address activities, events or developments that InterOil expects,
believes or anticipates will or may occur in the future are forward-looking statements, including in particular, the expected timing and
results of Raptor-1 and Bobcat-1. These statements are based on our current beliefs as well as assumptions made by, and information
currently available to us. No assurances can be given however, that these events will occur. Actual results could differ, and the difference
may be material and adverse to the Company and its shareholders. Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the Company, which may cause our actual results to differ materially from those
implied or expressed by the forward-looking statements. Some of these factors include the risk factors discussed in the Companys filings
with the Securities and Exchange Commission and on SEDAR, including but not limited to those in the Companys Annual Report for the
year ended 31 December 2013 on Form 40-F and its Annual Information Form for the year ended 31 December 2013. In particular, there is
no established market for natural gas or gas condensate in Papua New Guinea and no guarantee that gas or gas condensate from the Elk and
Antelope fields will ultimately be able to be extracted and sold commercially. Investors are urged to consider closely the disclosure in the
Companys Form 40-F, available from us at www.interoil.com or from the SEC at www.sec.gov and its Annual Information Form available
on SEDAR at www.sedar.com.